Fact Pattern 20-3 Dhani,an Accountant for Eureka,Inc.,learns of Undisclosed Com-Pany Plan-S to Market

question 69

Multiple Choice

Fact Pattern 20-3
Dhani,an accountant for Eureka,Inc.,learns of undisclosed com-pany plan-s to market a new laptop.Dhani buys 1,000 shares of Eureka stock.He re-veals the company plans to Fay,who buys 500 shares.Fay tells Geoff,who tells Hu.Both Geoff and Hu buy 100 shares.They know that Fay got her informa-tion from Dhani.When Eureka publicly an-nounces its new laptop,Dhani,Fay,Geoff,and Hu sell their stock for a profit.
-Refer to Fact Pattern 20-3.Under the Securities Ex-change Act of 1934,Fay is most likely​

• A)liable for insider trading.
• B)not liable because Fay did not prevent others from profiting.
• C)not liable because Fay did not solicit information from Dhani.
• D)not liable because Fay does not work for Eureka.

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Definitions:

Kentucky

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A movement within Protestantism characterized by an emphasis on personal conversion experiences, evangelism, and the authority of the Bible, often associated with large public revival meetings.

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Subgroups within larger religious traditions that often form around specific interpretations of doctrine, religious practices, or leadership, sometimes leading to distinct communities.

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A period referring to the middle decades of the 19th century, around the years 1830-1870.